Back arrowButton/calendaricon/lockicon/sponsor
Open search
Close search
Call us on0808 168 5874

By: Paul Sugarman, Learning and development adviser

Why companies invest in training

Improving management and leadership skills is one of the key factors the UK should address to improve the productivity and performance of the economy overall. 

A recent EEF survey of 300 professionals showed leadership and management skills needs major improvement to tackle the productivity challenge.




  • 85% of HR professionals believe their firm has good managers but they don’t lead as part of their role
  • Only 15% of HR professionals say that there is strong leadership at every level of the organisation
  • 46% of HR professionals believe their managers don’t make good role models 
  • HR professionals said 56% of their firm’s managers are unable to recognise the need for change

This leadership gap analysis tool helps companies identify and develop future leaders.

Is your business prepared for the future of learning?

According to CIPD’s “Preparing for the future of learning” April 2016 report, organisations consistently achieve better business and individual performance if they make sure to align the needs of the business with the needs of the employee, and follow that path to create both engagement and capabilities to demonstrate value.



Organisations that follow these steps are reportedly:

5-X-productivity-new---smaller        5-X-Efficiency-new---smaller        8-X-learning-culture-new---smaller

Why successful companies invest in training and development?

Successful companies invest in their workforce to get maximum return.
Engaged workers are more productive, and investing in them can result on higher retention rates and a reduction in staff turnover.

Return on investment should not only be measured directly by its impact on the business, but should also be measured indirectly, through the behaviour, development and productivity of the workforce. 



How training and development helps businesses grow, innovate and be more productive?

Improving critical leadership skills contributes to the overall performance of your workforce and business as a whole, including:

communication-skills manage-change organisational-skills discipline-and-grievances

Development of leadership skills helps managers look forward and think strategically instead of day-to-day firefighting. It also creates the right environment for people to grow and flourish in, be motivated, innovate and feel part of the business.

With the right training and development plan, a business can tackle issues and challenges that would otherwise be more difficult to solve or achieve.

It’s important that companies plan how training will help employees achieve their goals and objectives (and how those goals would contribute to the business), with appropriate follow-up evaluations and appraisals.

Align your training plan with your business needs, identify and skill gaps and use training as a development tool, as well as a retention tool. This course of action (pun intended) will make sure your training programme contributes to the overall business goals. 

Consider the following things when planning a training and development programme for your workforce:

  • What are the skill gaps you are trying to fill?
  • What are you trying to achieve?
  • How much are you spending to achieve this?
  • What benefits are you expecting to see?

How can companies use training and development to keep ahead of competitors?

A good way to keep your business ahead of the competition is to become a workplace that knows how to attract and retain talent.

Attracting quality talent

If you are a business that’s recognised for being a good employer that invests in employees and develops them, then you have a much better chance of attracting quality talent.

Better productivity

Employees who are invested in and developed feel more like they are part of the business and are far more likely to make more of an effort, strive to innovate and be more productive.

Employee turnover

Many employees who leave do so during their first six weeks on the job (also known as “Induction trauma”). By training managers and enabling them to create the right induction programme for new employees, businesses can significantly improve retention and keep new employees from leaving.

How to tell if your investment in training and development paid off?

It’s important to have a plan with defined goals and objectives, which you can monitor against workforce and business performance. 
While the impact will be very much dependant on your business, workforce, skill gaps and, of course, your training and development plan, you can plan to see changes in:

  • Retention
  • Productivity
  • Recruitment
  • Discipline and Grievances

By answering these questions and planning ahead you’ll be able to come up with a solid training and development plan, gain a better trained, more content workforce and be able to demonstrate how these efforts are helping the business grow, innovate and be more productive.

Explore our range of our management and leadership courses to develop your workforce’s leadership skills with CMI and ILM accredited training, taught by our most experienced professionals in the business.
Blog / Leadership and management / Skills